IRDA will align corporate governance, disclosure norms of Insurance Sector with new Companies Act

Insur­ance sec­tor reg­u­la­tor Irda will align its cor­po­rate gov­er­nance and dis­clo­sure norms in accor­dance with the new Com­pa­nies Act, 2013. For this, the Insur­ance Reg­u­la­to­ry Author­i­ty of India (Irda) has set up a 12-mem­ber com­mit­tee under its mem­ber R K Nair.

In order to bring har­mo­ny between the cor­po­rate gov­er­nance and dis­clo­sure require­ments of the Author­i­ty and the Com­pa­nies Act, 2013, the Author­i­ty has decid­ed to con­sti­tute a work­ing group har­mon­is­ing Irda Cor­po­rate Gov­er­nance Guide­lines and Dis­clo­sures with Com­pa­nies Act, 2013.

The terms of ref­er­ence of the work­ing group include rec­om­mend­ing any changes that need to be made to insur­ance reg­u­la­tions specif­i­cal­ly on cor­po­rate social respon­si­bil­i­ty, relat­ed par­ty trans­ac­tions or finan­cial statements.

It will also under­take a com­pre­hen­sive view of the extant guide­lines on cor­po­rate gov­er­nance relat­ed with com­po­si­tion of board and its com­mit­tees, pro­vi­sions relat­ing to inde­pen­dent direc­tors, pro­vi­sions relat­ed to remu­ner­a­tions of CEO, man­ag­ing direc­tor or whole time directors.

The work­ing group is expect­ed to com­plete its task with­in four months.